If I have a mutual fund investment account that originated as a custodial account, was my investment considered a gift? Or did I technically purchase it?

[lenn0n19]

My grandparents set up a custodial account when I was a child and I did not come into control over it until I was in my 20s. I did not technically purchase the shares myself, but I still owned the account. Is this considered a gift or did I purchase the property?

[macuser_22]

Neither.   A custodial account was purchased in your behalf and became your account when  you became an adult.    If you sell the fund then your basis is what it was originally purchased for.

[lenn0n19]

Ok, so then what dropdown option do I choose for the question "how did you receive this investment?" 

Options are I purchased it, I inherited it, I received it in a divorce settlement, I received it as a gift, and I received it from a demutualization of a life insurance company.

[macuser_22]

Tax wise there is no difference between a custodial account and a gift since it was given to you by your grandparents.

[Critter]

@lenn0n19 

For simplicity of entry just say Purchased ... it is a faster path. 

[Hal_Al]

For tax purposes, you "purchased" the shares.

The gift occurred when the money was put in the account.  That made it "your" account at the time the shares were purchased.